Section 3 Customs procedures

Step 1

Word bank

1. designated – предназначенный

2. drawback - возвратная пошлина

3. enterprise - (промышленное) предприятие

4. entrepôt trade - транзитная (перевалочная) торговля, то есть торговля, основанная на реэкспорте, при которой товары импортируются в страну, а затем экспортируются в том же виде в третьи страны

5. excisable - облагаемый акцизным сбором

6. export order - экспортный заказ

7. incentive - средства поощрения, стимулирования

8. inward (outward) processing - внутренняя (внешняя) переработка

9. neutralize - уравновешивать, компенсировать, нейтрализовать

10. refund - возвращение (денег); компенсация

11. relieve from payment - освободить от уплаты

12. shipment - погрузка; отправка, перевозка

13. sorting, grading – сортировка

14. tangible (intangible) - вещественный, материальный, осязаемый (нематериальный)

15. temporary admission - временное разрешение на ввоз (таможенный режим, при котором товары ввозятся на таможенную территорию страны без уплаты таможенных платежей и при условии реэкспорта товаров в течение определенного периода)

16. wholesale trade - оптовая торговля.

Task 1. Look in the dictionary the correct stress for the following words, read them aloud:

a) input, to import, an export, effect, control, product, exported, competitive, importation, application, refund, temporary, admission, to permit, insofar;

b) economic, until, disposed, marketable, intend, discounted, promote, enable;

c) directly, transit, fulfill, certificate, origin, assessment, competent, appropriate, administrative.

Task 2. Translate the following words and learn their pronunciation: incentive, procedure, simplification, harmonization, neutralize, enterprise, require, evince, circulation, partial, relieve, specified, processing, manufacture, exemption, disposal, external, finally, utilize, entrepôt, license, licensing, quality, prepare, earn, receive, tertiary, consumption, measure, authorities, veterinary.

Task 3. Change verbs to nouns by adding one of the given endings and fill in the table below.

To designate	to divide	to connect
To clear	to prohibit	to accept
To pay	to perform	to accomplish
To legislate	to appear	to resist
To assess	to lodge	to decide
To enforce	to require

-ment	-ance	-tion	-sion

Task 4. Match up Customs terms and their definitions, translate them into Russian. Add any information you know about these concepts.

1) visible import	a) consumed almost immediately,
2) invisible import	b) goods which are used directly in the production of other goods or services,
3) capital goods	c) physical goods, for example industrial products and food,
4) durable	e) consumed over a period of time,
5) nondurable	f) physically intangible items.

Task 5. Fill in the boxes in the table below with the correct items.

Exports		Imports
Visible	Invisible	Visible	Invisible

1. Canadian vacuum cleaner bought by a housewife in Russian.

2. Russian car sold in Finland.

3. Russian tourist in France.

4. Dutch tulips sold in Russian shops.

5. Russian coal sold in China.

6. Russian computer used in America.

7. Russian piano bought by a housewife in Estonia.

8. Spanish tourist in Russia.

9. Greek ships carriers of Russian goods.

10. French perfume sold in Russia.

11. Russian insurance company insures an Italian ship.

12. Belgian beer sold in Russian.

Step 2

Text work

Task 6. Complete the sentences.

1. National // several // procedures // legislation // Customs // contains //.

2. opportunities // for // incentives // more // labour // Export // the // employment // provide // national.

3. by // incentives // are // Convention // Export // provided // Kyoto // the.

4. special // a // Free // of // of // the // are // territory // zones // state // parts.

Task 7. Ask questions to elicit the underlined information.

1. In order to obtain the clearance of goods the declarant is to present a Goods declaration with supporting documents.

2. Under certain conditions the payment of import duties and taxes may be deferred.

3. Among measures taken by Customs in connection with clearance are: assessment of import duties and taxes and release of the goods.

4. Certain data is required for the enforcement of statutory or regulatory provisions.

5. The Customs authorities determine the competence of the Customs offices at which goods may be cleared for home use.

6. The particular requirements of trade and industry should also be taken into account to determine the competence of these offices.

7. The declarant should present the certificates of origin in order to obtain the release of the goods.

8. The lodgement of a Goods declaration is the essential requirement to be fulfilled to get the clearance.

Task 8. Transform the following sentences from passive voice into active voice.

1. A few main obligations are fulfilled by the declarants.

2. Under certain conditions the payment of import duties and taxes may be deferred by Customs.

3. The special Customs offices will be designated by the Customs authorities.

4. The special conditions and Customs formalities for the clearance of goods for home use were specified by national legislation.

5. The competence of certain Customs offices may be restricted by the Customs authorities.

Task 9. Insert the right infinitive from the list below. Translate the sentences.

to guarantee	to be taken	to limit
to be taken into account	to be imported	to be accomplished
to be cleared	to carry out	to clear
to obtain	to be fulfilled

1. National legislation shall specify the conditions ____ and the Customs formalities ____ for the clearance of goods for home use.

2. The factor ___ shall include the particular requirements of trade and industry.

3. Goods ___ for use or consumption must be declared for home use.

4. The Customs authorities shall designate the Customs offices ___ goods for home use.

5. There are certain categories of goods ___ at Customs offices designated for that purpose.

6. Security ___ payment of the import duties and taxes may be required by the Customs.

7. The main measures ___ in connection with clearance are the following.

8. National legislation may include restrictions ___ the importation of certain goods.

9. There are other competent authorities ___ certain controls on goods declared for home use.

10. It is the Customs responsibility ___ the data required for trade statistics.

Task 10. Fill in the following words: capital goods, consumer goods, durable, intellectual property, investment, invisible trade, nondurable, patents, producer goods, raw materials (2), services, visible trade.

In economics, ___ is exchange of physically tangible goods between countries, involving the export, import, and re-export of goods at various stages of production. It is distinguished from ___, which involves the export and import of physically intangible items such as services. Countries lacking various ___will import needed substances such as coal or crude oil from nations. Sometimes ___ will be partially processed or converted into ___ within the country from which they originate. Goods may also be processed into ___ prior to export or import and prior to the ultimate purchase by the buyer. These may be ___, as are automobiles, or ___, as is food. Visible trade also includes the export and import of ___ such as industrial machinery and equipment. Basic categories of invisible trade include ___(for example shipping); income from foreign ___ in the form of interest, profits, and dividends; ___ and ___.

Task 11. Fill in the following words: competitive, convention, employment, enterprises, incentives, legislation, neutralization, procedures.

Export incentives

There are several Customs ___, contained in the International Convention on the Simplification and Harmonization of Customs Procedures (the Kyoto ___), which when incorporated in national ___ enable countries to provide Customs facilities to ___ the cost-rising effects of tariffs and other controls on export industries which require imported production inputs, thereby enabling national ___ to offer their products or services on foreign markets at ___ prices. Consequently, more ___ opportunities are provided for the national labour force, scarce foreign capital is attracted to generate more economic activity and net inflows of foreign exchange are evinced.

Task 12. Look through the text from Exercise 11 and decide if the following statements are a) true, b) false, c) absent in the text.

1. The Kyoto convention was adopted in 1974.

2. Export incentives enable countries to provide Customs facilities to neutralize the cost-raising effects of tariffs.

3. Export incentives are provided by several Customs procedures.

4. Customs tariffs enable national enterprises to offer their produсts or services on foreign markets at competitive prices.

5. The International Convention on the Simplification and Harmonization of Customs procedures was passed in New York.

Task 13. Match up the following Customs procedures which provide some export incentives.

1. Temporary admission of goods,

2. Drawback,

3. Customs warehousing,

4. Free zone,

5. Outright exportation,

6. Duty-free replacement of goods,

7. Temporary admission for inward processing,

8. Temporary exportation of goods for outward processing.

a) … is the Customs procedure applicable to goods in free circulation which leave the Customs territory and are intended to remain permanently outside it, excluding goods exported or with repayment of import duties and taxes;

b) … is the Customs procedure under which imported goods are stored under Customs control in a designated place without payment of import duties and taxes;

c) … is paying back a duty previously paid on exporting excisable articles or on re-exporting foreign goods. The object of this Customs procedure is to let commodities which are subject to taxation be exported and sold in a foreign country on the same term as goods from countries where they are untaxed;

d) … is the procedure under which certain goods can be brought into a Customs territory conditionally relieved from payment of import duties and taxes; such goods must be imported for a specific purpose and must be intended for re-exportation within a specified period and without having undergone any change except normal depreciation due to the use of the goods;

e) … is the procedure under which certain goods can be brought into a Customs territory conditionally relieved from payment of import duties and taxes; such goods must be intended for re-exportation within a specific period after having undergone manufacturing, procession or repair;

f) … is the procedure permitting the importation, free of import duties and taxes, of goods equivalent (identical in description, quality and technical characteristics) to those which were in free circulation and which were processed into products previously exported outright;

g) … is the procedure under which goods in free circulation in a Customs territory may be temporarily exported for manufacturing, processing or repair abroad and then re-imported with total or partial exemption from import duties and taxes;

h) … is a part of the territory of a state where any goods introduced are generally regarded, insofar as import duties and taxes are concerned, as being outside the Customs territory and are not subject to the usual Customs control. In commercial free zones, goods are admitted pending subsequent disposal, and processing or manufacture is normally prohibited. Goods admitted to industrial free zones may be subjected to authorized processing operations.

Task 14. Answer the following questions.

1. What procedure is applicable to goods which are intended to remain permanently outside the Customs territory?

2. Are import duties and taxes paid for the goods stored under Customs control?

3. When is refund made in respect of the import taxes charged on the goods?

4. What are the conditions under which goods brought into a country can be relieved from payment of import duties?

5. What happens to goods that are temporarily exported?

6. What are free zones? What is the difference between commercial and industrial free zones?

7. What are the advantages of placing goods temporarily in Customs warehouses?

8. What operations are permitted in a Customs warehouse?

9. Who is interested in entrepôt trade operations?

10. What are exporters permitted to use the warehousing facility for?

Step 3

Talking points

Task 15. Work in a team (of 3-4 people). Discuss if the classification “trade” into visible and invisible has any importance for the Customs.

Use such phrases as I think that …, in my opinion …, Also I would like to add …, I’d like to stress that …, on the other hand, however… .

Task 16. Work in a team (of 3-4 people). Find out the most important Customs procedures for Russia and present your views to the class. Start your opinion with special phrases such as I think that …, in my opinion …, Also I would like to add …, I’d like to stress that …, on the other hand, however… .

Task 17. Choose any role and be ready to act out as a Customs officer and a businessman. Discuss the following situation: a businessman is going to export or import some goods and needs an advice on necessary procedures (use any goods and foreign country you like).

Step 4

Project

Task 18. Use the internet (and other sources of information) and make a small report about any free zone in the Russian Federation.

Task 19. Using the internet find the information on the following topics. Prepare a presentation on the topic:

1) articles prohibited for import into the USA (UK, Canada, Australia and New Zealand);

2) restrictions on import and export in the USA (UK, Canada, Australia and New Zealand).

Unit IV

Smuggling

Section 1

Concept of smuggling

Step 1

Word bank

1) attempt - пытаться, стараться, стремиться, делать попытку; попытка

2) by stealth - украдкой, тайком, незаметно для других, скрытно

3) circumvent - провести, обмануть, обойти, перехитрить

4) clandestine - тайный, скрытый, секретный; нелегальный

5) conveyance - перевозка, транспортировка

6) cut down (on) - снижать, сокращать

7) deprive - лишать, отбирать, отнимать,

8) drug trafficking - контрабанда наркотиков

9) embargo - а) эмбарго, правительственный запрет на выход торговых судов из их портов, б) юридический запрет на осуществление торговой деятельности

10) evade - избегать; уклоняться (от уплаты, от ответственности); обходить (закон, вопрос)

evasion - увиливание, уклонение

11) human trafficking - торговля людьми

12) in defiance of - в нарушение, вопреки; с явным пренебрежением к 13) merchant - торговец; лицо, занимающееся оптовыми продажами 14) people smuggling – незаконная транспортировка людей через границу

15) profit - выгода, прибыль

profitable - прибыльный, выгодный, доходный, рентабельный)

16) traffic in smth - торговать (чем-л.)

trafficker – торговец

trafficking - торговля запрещённым товаром.

Task 1. Read the following words:

a) deprive, widespread, survival, cocaine, clandestine, violation, spice, item, grain, raise, excise, primary, rising, liberalization, recognize, hides;

b) tea, weapon, widespread, threaten, beneath, stealthy, fear, sea, seafarere, creation.

Task 2. Translate the following words and learn their pronunciation (if you need use the dictionary):

1. purchase, margin, species, petty, to swallow, swallower, merchant, contrabandist, rum, beverage, jurisdiction, liquor, to originate;

b) conveyance, applicable, to evade, evasion, to flourish, quantity, to exceed, theft, financial, removal.

Task 3. There are three main models to form country adjectives and some exceptions. Look through the following adjectives and try to find out these main models and exceptions: English, French, German, Chinese, Mexican, Dutch, Jamaican, Swiss, British, Russian, Irish, Portuguese, Greek, Canadian, Scottish, Australian, Polish, Brazilian, Iraqi, Egyptian, Vietnamese, Swedish, Finnish, Thai, Icelandic, Spanish, Arab (Arabic for language), Korean, Turkish, Israeli, Argentinean.

Task 4. Fill in the gaps with appropriate words, then make sentences, as in the model. Use suffixes –ian, -ese, ish to form country adjectives.

Model: Coffee is Brazilian. It’s from Brazil.

Item	indication of source on goods	Country of origin
coffee	Brazilian	… Brazil
cars		Japan
cheese		France
chocolate	Swiss
cocaine	Colombian
computers		the USA
electronics		Germany
furniture	Finnish
meat	Argentinean
olives		Greek
souvenirs		Mexico
tea		China
textile	Turkish
timber		Russian
weapons		Israel
wheat		Canada
whiskey		Ireland
wine	Spanish

Task 5.

Choose corresponding Russian terms for English Customs terms. Make up your own sentences with some of these words.

1) arms	а) обмануть, обойти
2) beverage	b) перевозка, транспортировка
3) circumvent	c) доход
4) clandestine	d) уровень; величина
5) conveyance	e) нарушение
6) cut down on	f) напиток
7) evasion	g) снижать, сокращать
8) rate	h) живая природа
9) revenue	i) увиливание, уклонение
10) violation	j) оружие; вооружение
11) wildlife	k) тайный, скрытый, нелегальный

Task 6.

Denote the following phrases by a single word:

1) animals and other living things that live in the wild,

2) to battle or fight,

3) people who take goods into or out of a country illegally,

4) an official ban on trade or other commercial activity with a particular country,

5) a legal or official punishment, such as a term of imprisonment,

6) open resistance; bold disobedience,

7) producing a great deal of profit.

Step 2

Text work

Task 7. Put the verbs into the correct form.

Smuggling of goods

Much smuggling (to occur) when enterprising merchants attempt to supply demand for a good or service which (to be) illegal or heavily taxed. As a result, illegal drug trafficking, and the smuggling of weapons, as well as the historical staples of smuggling, alcohol and tobacco, (to be) widespread. As the smuggler (to face) significant risk of civil and criminal penalties if caught with contraband, smugglers are able (to impose) a significant price premium on smuggled goods. The profits involved in smuggling goods appears to be extensive.

Profits also (to derive) from avoiding taxes or levies on imported goods. For example, a smuggler might (to purchase) a large quantity of cigarettes in a place with low taxes and smuggle them into a place with higher taxes, where they can be sold at a far higher margin than would otherwise be possible. It has been reported that smuggling one truckload of cigarettes within the United States can (to lead) to a profit of US$2 million.

Task 8. Complete the sentences.

Wildlife smuggling

1. / the lucrative nature / Wildlife smuggling / for / from / exotic species / and / the demand / of the trade / results /.

2. The CITES / political / across / of / the movement / endangered / borders / wildlife / regulates /.

3. agreement / governments / is / between/ international / an / CITES /.

4. of / of / of / for / after / was drafted / Conservation / members / the International Union / the meeting / Nature / It /.

5. on / into / 1975 / CITES / force / 1 July / entered.

6. wild animals / threatening / prevents / specimens of / and / from / their survival / international trade in / CITES / plants /.

7. varying degrees / CITES / to more than / protection / species / animals and plants / of / of / 33,000 /.

Task 9. Match up words and word combinations in order to make up complete and true sentences.

Model: Smuggles take goods into or out of country illegally.

smugglers	travels	with illegal drugs hidden in his body
swallower	controls an organization	through the border
merchants	take goods	for profit
tourist	drives a trucker	as a job or for sport
fishers	crosses a border	for a long distance
sailor	prevent smuggling	dealing in illegal drugs
drug baron	catch fish	into or out of country illegally
customs officials	buy and sell commodities	on a ship
lorry driver	works	for pleasure

Task 10. Put verbs into correct form. Then read the text and ask as many questions to the text as possible.

Rum-running

1.

Rum-running (to be) an illegal business of transporting (smuggling) alcoholic beverages where such transportation (to forbid) by law. Smuggling is usually done (to circumvent) taxation or prohibition laws within a particular jurisdiction. The term rum-running is more commonly applied to smuggling over water; bootlegging (to apply) to smuggling over land.

2.

The term "bootleg" (to originate) during the Civil War, when soldiers (sneak) liquor into army camps by concealing pint bottles within their boots or beneath their trouser legs. The term "rum-running" most likely (to originate) at the start of prohibition in the United States (1920–1933), when ships from the nearby island of Bimini (to transport) cheap Caribbean rum to Florida speakeasies. But rum's cheapness (to make) it a low-profit item for the rum-runners, and they soon (to move) on to smuggling Canadian whiskey, French champagne and English gin to major cities like New York and Boston, where prices (to run) high. Some ships (to carry) $200,000 in contraband in a single run — at a time when $50 a week (to consider) a good wage for an honest worker.

Task 11.

Put the correct prepositions: across, along, at, during, from, in, of, on, over, to. Make up your own sentences with these phrases.

Movement … goods, regulation … trade, duties …tea, prohibition … drugs, participation … trade, to be prohibited … export, embargo … trade, to earn revenue … export, to smuggle goods … the continent, … the edges of the USA, … embargo of 1807, … defiance of the law, to cut down … smuggling, … the US-Mexico Border, … modern times, smuggling … national borders, smuggling … water, smuggling … land.

Task 12.

Fill in: border, checkpoint, customs duties, evasion, goods, high-revenue, importation, legitimately, regulations, restrictions, smuggled, smuggling, spirits, trade.

Smuggling is conveyance of things by stealth, particularly the clandestine movement of … or persons across an international …, in violation of applicable laws or other …. Smugglers want to evade … or import or export ….

Smuggling is probably as old as the first tax or regulation on …. Smuggling flourishes when and where there are … duties (e.g., on tea, …, and silks, coffee and tobacco almost everywhere) or prohibitions on … (narcotics) or on exportation (arms and currency). In the 18th century, tea, tobacco, spices, silks, and spirits were … into England in quantities exceeding those brought in ….

There are various motivations to smuggle. These include the participation in illegal trade, such as drugs, illegal immigration or emigration, tax …, the theft of the items being smuggled. Examples of non-financial motivations include bringing banned items past a security … (such as airline security) or the removal of classified documents from a government or corporate office.

The most common types of … are smuggling of goods, people smuggling, human trafficking, wildlife smuggling.

Task 13.

Match up the kind of smuggling and particular objects. Make up definitions for the following crimes (1-6).

1) drug trafficking	a) 300 bottles of Canadian whiskey
2) people smuggling	b) a kidnapped girl
3) human trafficking	c) 5 kilos of cocaine
4) wildlife smuggling	d) 3 parrots
5) arms trafficking	e) 12 Mexicans who wants to live and work in the USA
6) rum-running	f) modern weapons

Step 3

Talking points

Task 14. Game work. Divide a class into two groups.

Find synonyms among the following words. Explain their meaning in your own words. Try to guess how all these people can be connected with smuggling (10 min). Share your variants and choose the best one.

Model: Words merchant and trader are synonyms. Merchant is a person who buys or sells goods in order to get some profit. Some merchants try to smuggle illegal goods hidden among their legal goods.

Smuggler	Drug lord	Swallower
Merchant	Customs officer	Contrabandist
Tourist	Fisher	Sailor
Air hostess	Drug mule	Drug baron
Fisherman	Stewardess	Customs official
Seaman	Trader	Traveler
Lorry driver		Trucker

Task 15. Make up a conversation on the topic “History of smuggling” between: a) British and American students; b) Russian and British students; c) Russian and American students. Use Appendix II. Supplementary reading.

Task 16. Work in a team (of 3-4 people) and discuss the following points:

1. What countries are famous for their rate of smuggling?

2. What countries “specialize” in smuggling of some certain goods? Is such specialization typical for the modern world?

Step 4

Project

Task 17. You can use this task for individual or team work. Look through the text Developmental Smuggling Model (Appendix II. Supplementary reading). Using the internet (on-line US and GB newspapers) find out cases with Phase I, II, III Smugglers and Organizations. Prepare a presentation “Classification of smugglers”.